What is the Truth in Lending Act (TILA)?

The Truth in Lending Act (TILA) is a 1968 U.S. law that is meant to protect consumers against predatory lending practices. TILA requires that credit lenders and financial institutions clearly disclose the key terms of their lending agreement, including the costs.

TILA does not regulate the costs of credit, it simply requires an open disclosure so that consumers are not tricked by predatory lending practices. TlLA also gives consumers the right to nullify certain credit agreements that might result in a lien on their home.

TILA applies to:

Credit that is offered or provided to consumers
Credit that incurs finance charges, or that is payable, under written agreement, in more than 4 payments
Credit that is only used for personal, family, or household purposes
Credit that is offered or provided more than 25 times in a year, or more than 5 times for credit that is secured by a dwelling
Business credit cards, as well as credit cards with no finance charge, or those with payments that are not payable in 4 installments

What are the provisions of TILA?

TILA provides a comprehensive set of regulations regarding credit disclosures. It states that lenders must disclose the terms of an agreement in writing and make clear in an obvious manner:

The identity of the creditor
Amount financed
Annual percentage rate, including variable rates
Payment schedule

Contacting a Massachusetts Foreclosure Attorney

If you are considering filing for a predatory lending case, but aren’t sure how to proceed, contact a Massachusetts foreclosure attorney at Phillips & Garcia to schedule your legal consultation today – 1-877-892-5620.